Hyundai will start producing electric vehicles and batteries in Thailand in 2026 with an investment of Bt1 billion (USD28 million).
The investment will be made by Hyundai Mobility Manufacturing (Thailand) Co Ltd, a unit of Korea’s Hyundai Motor Company, according to the Thailand Board of Investment (BOI), which approved the Korean automaker’s investment promotion applications earlier this month.
The BOI stated in its website: “The Hyundai project is placed under the second phase of Thailand’s plan to become a production hub for electric vehicles, known as the EV 3.5 package, which aims to promote investment in manufacturing covering the entire EV industry ecosystem, from cars to batteries, key parts and charging stations. As part of the EV 3.5 package, which covers a period of four years (2024-2027), the government provides incentives to manufacturers as well as subsidies to consumers purchasing EVs.”
BOI secretary general Narit Therdsteerasukdi was quoted as saying: “Hyundai’s entry into Thailand’s EV sector is a very positive development, confirming the attractiveness of Thailand as both a manufacturing base and an important market. Thailand’s strong existing supply chain will allow Hyundai to source not less than a third of the raw materials and parts it needs from within Thailand, thus supporting the local industry.”
Vehicle and battery production will take place at the Thonburi Automotive Assembly Plant Co Ltd (TAAP) in Samut Prakarn province. TAAP also produces Mercedes-Benz vehicles and EV batteries for the domestic market.
According to the BOI, Thailand, under its 30@30 policy, expects EVs to represent at least 30 per cent of the total motor vehicle production in the country by the year 2030.
“Thailand is the largest automotive production hub in Southeast Asia, and ranks in the top 10 in the world. So far, 18 manufacturers from China, Japan and Europe have either started making EVs in Thailand or announced they will begin over the next two years,” it stated.
The BOI said it has already approved projects with a total investment value of over Bt80 billion (USD2.27 million) in the EV supply chain.
